Varta on the brink: 140 years of history undone by its leadership
Varta, the legendary German battery brand, is bleeding out. Its creditors want out of the business, and it is not only China's fault: management and regulations are to blame too.
English · Original discussion in Spanish · Published
Varta, 140 years of history, runs out of power under its leadership
The legendary German battery brand Varta is in free fall. According to WirtschaftsWoche, its main creditors want to divest from the home battery business, a move that threatens to take down the rest of the corporation with it. Founded in 1887, the company survived two world wars, but not its own clueless executives.
The burden of management and Chinese competition
The diagnosis is devastating: the leadership failed at the worst possible moment. While Varta tried to compete on R&D and paid European wages, Chinese manufacturers offered nearly identical products at half the price, bypassing regulations and receiving state support. Chinese reverse engineering is a matter of months, as seen in textiles and electronics.
Apple's and the EU's role
Apple contributed to the collapse by buying cheaper Chinese batteries, accelerating offshoring. Meanwhile, Brussels burdens European companies with suffocating regulations while allowing unfair competition. The result: Europe is left without an industry of its own.
The end of an era?
With Varta hitting rock bottom, the European automotive sector could be next. The warning is clear: without industrial protection and with incompetent executives, the disappearance of century-old companies will become the norm.
The legendary German battery brand Varta is in free fall. According to WirtschaftsWoche, its main creditors want to divest from the home battery business, a move that threatens to take down the rest of the corporation with it. Founded in 1887, the company survived two world wars, but not its own clueless executives.
The burden of management and Chinese competition
The diagnosis is devastating: the leadership failed at the worst possible moment. While Varta tried to compete on R&D and paid European wages, Chinese manufacturers offered nearly identical products at half the price, bypassing regulations and receiving state support. Chinese reverse engineering is a matter of months, as seen in textiles and electronics.
Apple's and the EU's role
Apple contributed to the collapse by buying cheaper Chinese batteries, accelerating offshoring. Meanwhile, Brussels burdens European companies with suffocating regulations while allowing unfair competition. The result: Europe is left without an industry of its own.
The end of an era?
With Varta hitting rock bottom, the European automotive sector could be next. The warning is clear: without industrial protection and with incompetent executives, the disappearance of century-old companies will become the norm.
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (34 replies).
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